Online Systems Are For YOU, Not Your Accountant

Dayle Rodriguez, a System Advisory Manager for Kreston Reeves offers these useful insights:

Text copyright Dayle Rodriguez, reproduced with his kind permission.



In the last decade there has been a strong push towards cloud-based systems. “Go digital” people will say, “it is the future” they will chime on, but very rarely do they explain why?

Why should you go digital? What benefit does digital provide and more importantly…how do you do it?
 
Why and What?
 
Increased cashflow, getting paid faster, better/more consistent cashflow, working a 4 day working week?

If you are currently using basic software to operate your business, collect payments, and connect with clients, would you jump on the opportunity to integrate updated technology?

Knowing what tools your business needs to succeed and stand out against the competition is crucial. As a business, it is vital to stay on top of the latest software available, not just for your business and employees but also for client ease-of-use.

Optimising performance can be a more straightforward process with the right technology at your disposal. Integrating the right apps with your legal and accounting practise management software can streamline business processes and enhance outcomes for clients.

Streamlining the business process may include:

·      project and time/task management

·      flexible searching

·      client intake processes

·      calendar management

·      billing solutions (like an online payment gateway that could further improve your average debtor days)

·      and more

Lowering debtor days and increasing cashflow enables you to address software inefficiencies your business may be experiencing.

There is a common misconception that the digitisation of process and systems will remove the “human” element of business. When in fact, the opposite is true. Utilising effective technology and systems provides efficiencies that

In the past the ability to extract and collate key financial data for many businesses has been a painstaking task that requires a lot of back and forth between business owners and their bookkeeper or accountant.

Cloud systems and automation

Cloud systems/apps mitigate the risks such as;

·      Data loss

·      Key person risk

Cloud systems enable

·      Flexible working

·      A combined/live data base (a single point of information)

·      Live data

·      Better communications between teams, departments and the processes involved.

o  Resulting in the reduction of admin process and manual data entry

·      Better cashflow

·      Stock Management

Cloud systems go beyond your finical reporting and process. By having the systems integrated and “talking” to one another you can see improvements in cashflow, process efficiency, staff retention and customer satisfaction.

Historically speaking individuals and businesses that require accounting services have often considered bookkeeping & accounting a hygiene cost. Something that must be done to keep HMRC happy and is often a retrospective view of a business’s performance.

With online systems business owners have access to Real Time Data when it comes to their finances, stock and business performance (management reports).

How?

To get the benefits of cloud technology it is important to establish goals for you and your business. Scoping and mapping to identify small 1% gains can provide a massive impact on a business.

The following are 6 things you should use during your mapping/scoping process.

1)   Desired outcome: Have a clear goal in mind or a solution that the software/app will provide. If you can't do that...maybe you don't need the app...

2)   Company culture: Who will be using the new solution, are they bought in, is there a plan to get them up to speed?

3)   Consider complexity: You cannot THROW tech at a problem. Too often I have witnessed businesses see a shiny new app(s) as a panacea without considering the wider impact. (Consider the implementation a 3,6 or even 12 month project) THESE THINGS CAN, AND SHOULD, TAKE TIME

4)   Leadership: If you are a business owner, senior or even middle management you will need to be CONSISTANTLY driving the change.

5)   Communication, targets and milestones: Linked to the Point 3. It is important that progress is monitored and communicated to EVERYONE

6)   The app provider: What type of support do they offer. Are they invested in your team or your business? Do they understand the wider impact of their app in your business?
 
n.b. Point 3 is the most important and most overlooked in my experience. Don't rush the process, take your time and plan.

***************************************************

There is a saying; “Turnover is vanity, profit is sanity and cash flow is king”.

Have you ever wondered why Limited companies are given 9 months past their financial year end to file their accounts with HMRC? Answer: historically bookkeeping and accounting metrics take a long time to compile.

Think of every receipt, expense, supplier invoice, bank statement etc you have delivered to your bookkeeper or accountant (or perhaps the mountain of paperwork you troll through if you do your own books). The accountant or bookkeeper then has to manually find every transaction from all the paper you give them and produce a coherent compilation of information. Furthermore, in many cases there would be some back and forth as invariably information would be missing, or explanations are required. This long and laborious process was often considered a hygiene cost to many self-employed people or business owners. However, there is more to accounting than compliance (paying the hygiene cost).

With the advent of Real Time bookkeeping and accounting software financial data can be extracted very quickly. The knock-on effect, and probably the most crucial result of this is, you can make more proactive decisions for you/your business. Furthermore, the connectivity that online systems provide

Compliance vs Advisory

SMEs need more than tax, cash flow and compliance advice from their accountant,” says Dayle. “They need guidance on acquiring and retaining clients, measuring metrics for success and even fostering the right company culture.”